Washington State Proposes $2B Spending Increase Despite Deficits

House and Senate Democrats offer plans to fill budget gaps, but ultimately increase total spending

Feb. 24, 2026 at 1:48am

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House and Senate Democrats in Washington state have released supplemental budget proposals that aim to fill a multi-billion-dollar deficit, but would ultimately increase total spending. The proposals from Rep. Timm Ormsby and Sen. June Robinson call for $79.9 billion and $80.1 billion operating budgets respectively, which would lead to deficits in 2028 before returning to surpluses. The plans include tapping the state's rainy-day fund and assuming revenue from a proposed millionaire's tax, despite voters rejecting a state income tax 10 times in the past century.

Why it matters

Washington state is facing back-to-back budget deficits, but the Democratic proposals would increase overall spending rather than cut costs. This raises questions about the state's fiscal responsibility, the sustainability of its spending plans, and whether taxpayers will be asked to foot the bill through higher taxes or reduced services.

The details

The House budget proposal from Rep. Timm Ormsby would take $880 million from the state's rainy-day fund to fill the deficit, while the Senate plan from Sen. June Robinson would transfer $750 million. Both also assume over $2 billion in revenue from a proposed millionaire's tax over the next four years, despite voters rejecting a state income tax 10 times. The transportation budgets proposed by the Senate and House also increase spending, with the Senate plan relying on $1.1 billion in new bonds.

  • The 2025-27 biennial operating budget was signed into law by Gov. Bob Ferguson last spring, totaling $77.9 billion.
  • The supplemental budget proposals were released by House and Senate Democrats on Sunday, February 23, 2026.

The players

Rep. Timm Ormsby

A Democratic state representative from Spokane who released a $79.9 billion operating budget proposal.

Sen. June Robinson

A Democratic state senator from Everett who proposed an $80.1 billion operating budget.

Gov. Bob Ferguson

The governor of Washington who signed the original $77.9 billion operating budget for 2025-27 and has argued the proposed millionaire's tax wouldn't provide enough tax relief.

Rep. Travis Couture

The Republican budget leader in the state House who criticized the Democrats' proposals as a "spending addiction" that drains state reserves.

Sen. Marko Liias

A Democratic state senator from Edmonds who co-released a $17 billion supplemental transportation budget proposal with Republican Sen. Curtis King.

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What they’re saying

“A state is primarily an employer, and cost of providing good jobs for state workers with health care benefits continues to rise. Our incoming tax revenue is relatively flat, so it's the situation we're in, where we need to find a way to balance our budget and provide the services that we're best able to provide with the limited resources.”

— Sen. June Robinson, Democratic state senator from Everett

“You can't fix budget problems with more spending. When families face a deficit, they cut back to the essentials. When Democrats face a deficit, they raise your taxes, raid savings and pensions, and ensure government keeps growing while family budgets suffer.”

— Rep. Travis Couture, Republican budget leader in the state House

What’s next

The House will consider the millionaire's tax proposal in the coming days and weeks, and Gov. Ferguson has encouraged amendments before passage.

The takeaway

Washington state's budget proposals highlight the ongoing tension between Democratic calls for increased spending and Republican demands for fiscal restraint. The use of the rainy-day fund and reliance on a controversial millionaire's tax raise concerns about the long-term sustainability of the state's finances.